It’s hard to imagine a world in which crypto enjoys mass adoption. While it’s exciting to envision a world where BTC and ETH have emerged as the de facto everyday currency for billions of people, the reality is that such a future remains little more than a pipe dream.
Widespread acceptance doesn’t even look as if it’s remotely possible at present, but if we zoom out and focus on the reasons why that is, it becomes possible to see a path that can guide the crypto world forward. As always, one of the key factors that must be resolved to drive mass adoption of digital assets is the user experience.
The complexity of crypto is one of the main barriers to adoption. The need to understand the basics of cryptographic algorithms, digital wallets, private and public keys, the tortuous route to onboard first-timers to crypto, and the bizarre concepts of decentralized finance can overwhelm all but the most determined beginners. It discourages curious people from exploring the crypto world further, underscoring the need for the industry to simplify the user experience as much as it possibly can.
Earlier this year, Hubspot published a telling study that revealed how 88% of online consumers avoid revisiting a website if they have a negative experience with it. This extends to mobile applications, where 90% of respondents said they would simply uninstall it if the user experience isn’t up to scratch.
There are other factors preventing mass adoption of crypto, including the lack of regulation and worries about security, but the key challenge seems to be accessibility. And it’s something that is held back by more than one barrier, as crypto users are required to be both financially literate and technologically aware.
For instance, a 2015 study by Standard & Poor’s shows that only 33% of the world’s adult population is financially literate. This is a key consideration, both for crypto exchanges that often overwhelm new users with their complex trading instruments and user interfaces, and for the world of DeFi, which often assumes that people know the basics of saving, transacting, liquidity providing, APY and so on. When in fact, many don’t.
Education Is Not The Answer
DeFi requires knowledge and understanding of money to comfortably enter the space. Education is the obvious solution, but that requires an investment of time, which is a precious resource for many.
The lack of financial literacy is one of the main reasons why many in the DeFi sector are keen to target traditional financial institutions, but these organizations have their own barriers when it comes to crypto. Most TradFi companies require extensive documentation and have to ensure their funds are being handled in a compliant way. Added to that, the technology barrier is a problem for TradFi as much as it is for the average consumer.
A 2021 survey by the Economist Intelligence Unit, the research division of the Economist Group, found that 51% of participants cited a lack of knowledge about technologies such as blockchain as the main barrier to adoption in crypto.
The study, commissioned by the exchange platform Crypto.com, highlighted the extremely technical language and the frequent use of industry jargon as two of the major issues preventing users from understanding blockchain technology. While projects can create educational resources to explain the technological concepts and the jargon, the problem once more is the time it takes to educate new users. Because most people don’t have enough time to learn, educational resources only ever serve a limited audience.
Crypto Needs A Personal Touch
Some crypto projects say that one of the best ways to get around the lack-of-time-to-learn factor is to introduce a more personalized touch for each customer. That’s exactly the case with MultiBank.io, a new exchange based in Dubai that, perhaps, knows better than most how institutions and individuals with a background in TradFi struggle to get to grips with crypto concepts.
With roots in TradFi, where it has established itself as a leading platform for trading derivatives, Forex and commodities, among others, MultiBank says it’s keenly aware of the need to assist new crypto users. To that end, it provides each user with a dedicated relationship manager to guide them through their crypto-investing journey. MultiBank’s individual account managers help users to understand the intricacies of the crypto market, the different assets on offer, and can help individuals to create a customized investment plan based on their objectives and risk tolerance. It’s a system that has garnered lots of positive feedback, with many reviews on TrustPilot citing the support from their account managers as one of the reasons to stick with the platform.
It’s clear that the strong prevalence of technical jargon and the complexity of most crypto tools has created a major barrier towards mainstream adoption. It’s also clear that by simplifying the user experience and journey, the industry can better attract and retain users and establish itself more effectively as a factor in people’s lives.
As the competitiveness of the crypto landscape increases, it will be a good thing for consumers, as more platforms seek to differentiate themselves by focusing on the user experience. By helping their users through every step, with a more personalized approach, crypto platforms will foster more trust and show users that they care about their experiences.
Ultimately, the crypto industry must find a way to become more accessible and user-centric. By doing this, it can empower more individuals with the confidence and knowledge that’s necessary to participate in the digital economy.